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RAS question

India's real GDP growth estimate for FY26 as per First Advance Estimates cited by RBI is:

Correct answer: (C) 7.4%.

In MoSPI's First Advance Estimates for FY 2025-26, India's real GDP growth was estimated at 7.4%.

  1. (A)

    7.0%

  2. (B)

    6.8%

  3. (C)

    7.4%

  4. (D)

    7.8%

Explanation

The answer is 7.4% because the First Advance Estimates measure real GDP at constant prices, not current-price GDP or any single expenditure component. The National Statistics Office, under the Ministry of Statistics and Programme Implementation, released the First Advance Estimates for FY 2025-26 and stated that real GDP was estimated to grow by 7.4%, compared with 6.5% in FY 2024-25. The same press note gives the real GDP level as Rs 201.90 lakh crore for FY 2025-26, against Rs 187.97 lakh crore in the FY 2024-25 provisional estimate. That makes option C the GDP growth estimate asked for in the question.

Why the other options are wrong

  • (A) 7.0% is not the First Advance Estimate for real GDP growth; the MOSPI note uses 7.4% for real GDP and separately mentions 7.0% for real private final consumption expenditure.
  • (B) 6.8% does not match the real GDP growth figure in the First Advance Estimates, which place FY 2025-26 real GDP growth at 7.4%.
  • (D) 7.8% is not the real GDP growth estimate; the press note separately gives 7.8% as the constant-price growth rate for gross fixed capital formation.

Concept

This tests Indian Economy macro indicators, especially the reading of real GDP at constant prices in official advance estimates. It recurs in RAS-style MCQs because a close option set can mix GDP growth with nominal GDP or expenditure-component growth figures.

Source

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